HELP NEEDED-regarding invoice payment-r u an accountant-bookeeper? - HotUKDeals
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HELP NEEDED-regarding invoice payment-r u an accountant-bookeeper?

plumberman01 Avatar
5y, 6m agoPosted 5 years, 6 months ago
Hi
if anyone know the corect way to proceed please help me..
Basically friend of o/h did a large job in a business premises-so commercial-total invoice over £10000. On completion 6 weeks ago he was told the insurance were paying..he has not overcharged on this job as parts were £8000. Everytime he has called the insurance they have told him the cheque will be issued soon and they have seiously messed him about (never called him back etc)
He has asked for my help-i have called them and been told similar, but have said i expect a date when the cheque will be released by days end or i will have to escalate. This is serious as the cash flow is causing him loss of work and potentialy his home soon.
Q-can he charge interest? if so how much and fom when
Q-who is responsible? should i be talking to the director of the company?

ANYONE WHO KNOWS PLEASE HELP
plumberman01 Avatar
5y, 6m agoPosted 5 years, 6 months ago
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#1
What are his payment terms on the invoice?
If the invoice is overdue then you can charge interest at a reasonable rate.

But i would deffo speak to the Company Director. Its not for you to chase the insurance. I am pretty sure the contract is between your friend and the company....not the insurance company
#2
First thing, on the invoice, does it state that the amount is to be paid within x amount of days? If so, has this time period elapsed? If so, what penalty terms were included on the contract for the works?
#3
the invoice isnt much good tbh..hes not very businesslike
terms say
'all property remain the property of &&&&& until paid in full'

i appreciate any help guys thanks for replying
#4
This won't help in this instance but for future works your friend will need to come up with a contract which states things like payment terms in full. A good solicitor will be able to provide a basic 'skeleton' contract which would just be adapted for each job. The contract would also have things like health and safety rules which your friend would expect the business to abide by (for example not borrowing equipment after they've gone home, but at the same time it would be that your friend would leave the area clear and tidy before they go home). I saw quite a few of these contracts in my last job and they were all essentially the same with just tweaks for the individual job. I wish I had kept a copy of one now so I could show you what I mean.

Would there be any harm in your friend asking the trades 'association' for advice if one exists for their trade?
#5
Richard thanks-this will help in future..i am sure a H&S should be completed etc..and he needs to get clearer terms.
Dont know how to go now tho?
#6
Did your friend get a written and signed purchase order? They are legally binding and so would help a lot if he decides to go via court system. If he does have one, then I would suggest writing to whomever has issued the purchase order (actual business or insurer) with a reminder about payment giving x number of days to pay. A purchase order is essentially a promise by the business that they will pay for the works described. Don't forget to get the letter on a 'signed for' service.

If the payment is not completed by the end of the date asked in the letter, then it is one last letter with a short period of time for payment before appointing a solicitor to take the business to court would my advice.

At my last job I used to get these letters as I issued the works and therefore did all the purchase orders, some weren't paid simply because the accountant didn't like a company or didn't know them, it all got a bit petty really. It was a bit annoying when I wanted future works from companies.
#7
no purchase order as far as i know..he gave a quote and it was accepted-
i am writing it all down as he will be well covered next time!

i have looked at the businesslink site but it doesnt cover payment by a third party.
banned#8
Really risky way to do business IMO.

Did he not get a deposit? If terms and conditions showing the interest charges for late payments was not made available at time of quote/order stage then you can't just start charging interest.

All in hindsight but your mate should have know who would be responsible for the invoice payment and done a credit check on them. This situation is all to common in the current environment.

Phone calls achieve nothing - you/he needs to put everything in writing and explain that a debt recovery agent will be utilised unless payment is received within 7 days.

Hopefully he will learn for next time.
#9
thanks!

he has worked for them frequently and they have paid on the nose..its just the insurance this time which is causing an issue-i am going to call head office now

I will be sure and sort him ut for next time..tbh he needs a good woman behind him...lol

JonnyTwoToes
Really risky way to do business IMO.

Did he not get a deposit? If terms and conditions showing the interest charges for late payments was not made available at time of quote/order stage then you can't just start charging interest.

All in hindsight but your mate should have know who would be responsible for the invoice payment and done a credit check on them. This situation is all to common in the current environment.

Phone calls achieve nothing - you/he needs to put everything in writing and explain that a debt recovery agent will be utilised unless payment is received within 7 days.

Hopefully he will learn for next time.
#10
Sadly, as JTT says, too many companies will take advantage and if he gives 28 days in future, expect payment on the 28th day (all companies work like this!) and if they can get out of not paying they will do. I got people in to do work who were brilliant at their jobs, but couldn't do the admin and books side of things and it really showed.

I think that even if your friend loses a bit of this £10k for payment towards advice on moving forwards, then it'll be money very well spent.

Get writing that letter and good luck!
#11
thanks i recalled i know an accountant-local freecycle lol-she has advised me and im going to suggest he uses her in future as she can help im sure.

I will get his invoice sorted for him tho (_;) so no repeat messes!

thank you so much!!!!!!!!!!!!!!

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